Order 2012

- 11

- 11

Served: November 13, 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13 th day of November , 2012

ORDER APPROVING ALTERNATE SERVICE PATTERN

Summary By this O rder, we are approving an alternate service pattern for Lewistown, Montana’s subsidized Essential Air Service ( “ EAS ” ), operated by Silver Airways ( formally Gulfstream

International Airlines )

. Silver Airways will now be permitted to use a winter schedule to serve Le wiston Municipal Airport (LWT). The winter schedule will replace two nonstop round trips per service day with one and one

- half nonstop round trips per serv ice day

.

Background By Order 2011

- 1

- 27, issued on February 3, 2011

, the Department selected Silver Airways to provide subsidized EAS at Lewistown, Montana

, for the two

- year period ending May 31, 2013

. That Order directed Silver Airways to provide Lewistown with 1 2 nonstop round trips each week

to Billings with 19

- seat Beechcraft 1900D aircraft for an annual subsidy of $ 1,325,733

.

Proposal and Community Comments

In an e

- mail to the Department dated September 21, 2012

, Silver Airways proposed to implement

a winter schedule consisti ng of one and one

- half round trips per service day, as opposed to its normal service pattern of two round trips per service day. T he hub destination and aircraft type

would remain constant. Last winter, Silver Airways overnighted the aircraft at Havre and operated two round trips a day over a Havre

- Lewistown

- Billings routing. However, reliability suffered because of a lack of hanger and other equipment at Havre neces sary to overnight in a very cold environment. Therefore, Silver Airways is now proposing to overnight the aircraft in Billings, which has a hanger, Auxiliary Power Unit, and other cold

- weather equipment. The first flight of the day would typically operat e Billings

- Lewistown

- Havre

, and it is this flight that will Essential Air Service at

LEWISTOWN, MONTANA

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 1997

- 2605- 2

-

overfly Lewistown and fly nonstop to Havre. This winter schedule will be in effect from December 1, 2012, through March 31, 2013, at which time Silver Airways will revert to the original schedule of overnighting the aircraft in Havre.

By e

- mail dated October 9, 2012, the Department received confirmation that the community of Lewistown supports Silver Airways ’ winter schedule. That e

- mail included the attached letter

, dated September 21, 2012, signed by Lewistown’s Airport Manager, City Manager, Airport Board Chair/Co. Commissioner, Lewistown’s EAS Representative, and the town ’ s EAS Media

Administrator expressing support for the proposed winter schedule

. In that letter, the

aforementioned civi c officials stated “we would like to have the first flight of the day over fly Lewistown while going from Billings to Havre. This would still allow for potential early

passengers to access [Lewistown] by way of Havre.”

Decision We will approve the alt ernate service pattern, which meets the three conditions necessary for approval under authority assigned under 14 CFR Part 385.12(k)(3) of the Department’s Regulations: (1) the alternate service pattern is equal to or greater than that determined to be

ess ential; (2) the community does not object to the alternate service pattern; and (3) the alternate service pattern will not increase Silver Airways’ subsidy.

The parties should be aware that Silver Airways may revert to the non

- winter schedule as contemplated in Order 2011

- 1

- 27 at any time, subject to reasonable notification of the community.

The subsidy rate per flight will be adjusted as reflected in Appendix B

. The weekly ceiling and total annual subsidy are unchanged.

This Order is issued un der authority assigned in 14 CFR Part s 385.12(k)(3) and 385.13(k)(4)

.

ACCORDINGLY,

1. We approve the alternate service pattern described above for Lewistown, Montana ;

2. This docket will remain open until further order of the Department; and

3. We will serve a copy of this Order on the civic officials of Lewistown, Montana , and Silver
Airways

.- 3

-

Persons entitled to petition the Department for revi ew of this Order under the Department’s Regulations, 14 CFR Part 385.30, must file such petitions within ten days after the date of

service of this Order.

This Order will be effective immediately, and the filing of a petition for review shall not preclude its effectiveness.

By:

TODD M. HOMAN

Director Office of Aviation Analysis

(SEAL)

An electronic version of this document is available at http://www.regulations.govAPPENDIX A



### Area MapAPPENDIX B

Silver Airways

Essential Air Service to be provided at Lewistown, Montana

Effective Period : December 1

, 2012, through March 31, 201 3 ; Scheduled Service : one and one

- half nonstop round trips each weekday and weekend (1 8 total nonstop flights per week) to Billings ; Aircraft : 19

- seat Beech 1900D ; Rate per Eligible Flight: $ 1,460 ; 1
Weekly Ceiling : $ 26,280

. 2

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate order, including the service plans outlined in the Order and any other significant elements of the required service, without prior approval. The carrier understands that an

ai rcraft take

- off and landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed flights are consid ered eligible for subsidy. In addition, if the carrier does not schedule or operate its flights in full conformance with the Order for a significant period, it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplate s any such changes beyond the scope of the Order during the applicable period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Department to be ensured of full compensation. Should circu mstances warrant, the Department may locate and select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. I n determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to which the goals of the program are met and the extent of access to the national air transportation system provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes service requirements at a specific location provided for under this Order, then, at the end of the period for which the

De partment does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location without regard to any requirement for notice of such cessation. Those adjustments in the levels o f subsidy and/or service that are mutually agreed to in writing by the Department and the carrier do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this Order beyond March 31, 2 013

. The Department’s obligation for performance under this Order beyond March 31, 2013 , is subject to the availability of appropriated funds from which payment for services can be made. No legal liability on the part of the Government for any

payment ma y arise for performance under this Order beyond March 31, 2013 , until funds are made available to the Department for performance. If funds are not made available for performance beyond March 31, 2013 , the Department will provide notice in writing to the c arrier.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not
operate to controver t the foregoing paragraph.

All claims for payment must be submitted within 60 days of the last day of service provided under this Order.

1 Annual compensation of $1,325,733 divided by 908 annual departures: 18 flights x 52 weeks x .97 (completion factor) = $1,460

. 2 18 flights per week multiplied by $ 1,460 per flight.